Recordati S.p.a. · MIL:REC
Recordati — Jefferies 2012 Global Healthcare Conference
24 slides from Recordati's conference presentation, Jun 5, 2012
Slide 1: A Specialty Pharmaceutical Group
A Specialty Pharmaceutical Group JEFFERIES 2012 GLOBAL HEALTHCARE CONFERENCE, NEW YORK, 5 JUNE 2012
Slide 2: A strategy of growth and geographical expansion
A strategy of growth and geographical expansion • A mid sized pharmaceutical company with a European focus. 2011 revenue € 762 million, EBIT € 163 million, net income € 116 million. Over 3,200 employees. • R&D in the cardiovascular and urology fields and in treatments for Profile rare diseases • Mar
Slide 3: Our products are sold in 135 countries
Our products are sold in 135 countries 19 Subsidiaries 40 Branches and other forms of territorial presence 76 Countries where Recordati products are sold (under license or exported) 3
Slide 4: A growing presence in Eastern Europe and Turkey
A growing presence in Eastern Europe and Turkey Spain 4.2% Portugal 4.1% Turkey 7.3% UK 0.8% Germany 7.6% Other W. European countries 2.3% Russia, other CEE 8.5% France 15.2% Other international sales 20.5% (sales to licensees and exports) Italy 29.5% Data: 1Q 2012 Pharmaceutical revenue € 212.1 m 4
Slide 5: A richer product portfolio
A richer product portfolio Urorec 3.5% Other corporate products 9.9% Zanipress 5.7% Orphan drugs 9.2% Zanidip 14.2% Pharmaceutical chemicals 3.4% Subsidiaries’ local product Other revenue 1.8% portfolios 52.3% Entact®/Elopram® 5% (escitalopram/citalopram) ‐ Italy Tergynan® ‐ Russia & CIS, France exp
Slide 6: Sales development: key growth drivers
Sales development Key growth drivers • New corporate products: Urorec® (silodosin) Livazo® (pitavastatin) • New growing markets • Orphan drug business 6
Slide 7: Urorec (silodosin)
New corporate products Urorec® (silodosin) • Highly selective α1A receptor antagonist indicated for the treatment of symptoms associated with benign prostatic hyperplasia (BPH). • Fast onset of action. High efficacy. Very good cardiovascular safety. • Launched in 15 markets: Belgium, Bulgaria, Czech
Slide 8: Livazo (pitavastatin)
New corporate products Livazo® (pitavastatin) • Highly effective HMG‐CoA reductase inhibitor indicated for the treatment of hypercholesterolaemia. • Thanks to its unique chemical structure Livazo® is a potent LDL‐lowering drug with a consistent and progressive HDL‐raising effect. (Atherosclerosis Su
Slide 9: Lercanidipine franchise
Lercanidipine franchise Zanipress® (lercanidipine+enalapril) Zanidip® (lercanidipine) • Lercanidipine is a latest generation calcium channel blocker indicated for the treatment of hypertension. Enalapril is an ACE inhibitor indicated for the treatment of hypertension. • Sales of Zanidip® (lercanidip
Slide 10: Russia, Ukraine and other C.I.S. markets
New growing markets Russia, Ukraine and other C.I.S. markets Russia has the largest pharmaceutical market in the CEE region, forecast to grow at a CAGR of 11.6% in the period 2010‐2014. (Jefferies) • Rusfic in Russia and FIC Médical in the other CIS countries to become exclusive Recordati subsidiari
Slide 11: Turkey
New growing markets Turkey Turkey remains one of the most promising pharmaceutical markets in Central and Eastern Europe in the long term. (Research and Markets) • Following the acquisition of Yeni Recordati in 2008 and of Dr. Frik İlaç in 2011 the Turkish market represents the third largest in the
Slide 12: Orphan Europe - A worldwide business
Orphan drugs Orphan Europe ‐ A worldwide business Huge market potential: 5,000‐7,000 rare diseases identified for which only 72 orphan drugs are approved. Progressive country introduction of rare disease plans and access to diagnostic tests will stimulate the market for orphan drugs. • Sales CAGR >1
Slide 13: Orphan drugs
Orphan drugs ADAGEN® (pegademase bovine), indicated in the treatment of SCID‐ADA deficiency CARBAGLU® (carglumic acid), indicated in the treatment of hyperammonaemia due to NAGS deficiency and to the main organic acidemias CYSTADANE® (betaine anhydrous), indicated in the treatment of homocystinuria
Slide 14: A well balanced R&D pipeline
A well balanced R&D pipeline NAME ORIGINATOR INDICATION DEVELOPMENT STATUS Approved in EU CARBAGLU® Recordati Organic acidemias Phase III in U.S. NORMOSANG® Recordati Hepatic porphyria Pre‐registration in U.S. lercanidipine/enalapril Recordati Essential hypertension Pre‐registration combination* REC
Slide 15: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CARBAGLU® (carglumic acid), currently approved for the treatment of hyperammonaemia due to NAGS deficiency, recently approved in Europe and in phase III clinical development in the USA for additional indications in organic acidemias. • NORMOSANG® (human haemin
Slide 16: A well balanced R&D pipeline (cont'd)
A well balanced R&D pipeline (cont’d) • CYSTADROPS® (cysteamine chlorhydrate) are eye drops developed for “ocular manifestations of cystinosis” which cannot be controlled by orally administered cysteamine, specially formulated in a patient‐friendly gel form. • REC 0422 is a combination of two existi
Slide 17: First quarter 2012 highlights
First quarter 2012 highlights A good quarter • Revenue € 219.6 million, up 11.0%. • Operating income (EBIT) € 47.6 million or 21.7% of sales, up 7.5%. • Net income € 33.8 million or 15.4% of sales, up 7.5%. • Phase III trials started for REC 0482, the new innovative BPH treatment from Nymox • Acquis
Slide 18: Composition of revenue
Composition of revenue New markets and new products drive growth (million Euro) 1Q 2012 1Q 2011 Change % Italy 62.6 60.6 3.2 France 32.2 32.6 (1.5) Germany 16.1 16.0 0.9 Turkey 15.6 8.1 93.0 Spain 8.9 8.3 7.0 Portugal 8.6 9.1 (4.7) United Kingdom 1.6 2.1 (22.5) Other Western European countries 4.9 4
Slide 19: Main product sales
Main product sales Corporate products including orphan drugs now account for 42.5% of revenue (million Euro) 1Q 2012 1Q 2011 Change % Zanidip® (lercanidipine) 31.3 35.5 (11.9) Zanipress® (lercanidipine+enalapril) 12.4 8.9 40.2 Urorec® (silodosin) 7.6 3.8 99.1 Livazo® (pitavastatin) 3.1 ‐ n.a. Other
Slide 20: First quarter 2012 results
First quarter 2012 results Good sales and earnings growth (million Euro) 1Q 2012 1Q 2011 Change % Revenue 219.6 197.8 11.0 Gross Profit 141.6 130.9 8.1 as % of revenue 64.5 66.2 SG&A Expenses 77.3 70.9 9.0 as % of revenue 35.2 35.8 R&D Expenses 15.7 15.6 0.6 as % of revenue 7.2 7.9 Other Income (Exp
Slide 21: Financial position and Shareholders' equity
Financial position and Shareholders’ equity A solid balance sheet (million Euro) 31 Mar 2012 31 Dec 2011 Change Cash and short‐term financial 113.3 105.2 8.1 investments Bank overdrafts and short‐term loans (21.6) (13.6) (8.0) Loans – due within one year (10.0) (11.6) 1.6 Loans – due after one year
Slide 22: Financial projections
Financial projections Challenging 2012 targets 2011 2012 (million Euro) Actual Targets Revenue 762.0 810‐830 Operating income (EBIT) 163.5 160‐170 Net Income 116.4 115‐120 22
Slide 23: The Recordati share
The Recordati share The Recordati share (ticker REC, Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271) has been listed on the Italian Stock Exchange since 1984. It belongs to the FTSE IT Mid Cap and FTSE IT Health Care indexes. Share capital consists of 209,125,156 ordinary (common) shares with
Slide 24: Company declarations, disclaimers and profile
Company declarations, disclaimers and profile DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154‐bis of the Consolidated Law on Finan
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